The European Banking Authority has introduced a series of technical standards and guidelines for token issuers as MiCA implementation moves forward.
The European Banking Authority (EBA) has released a comprehensive package of technical standards and guidelines under the Markets in Crypto-Assets (MiCA) regulation, providing regulatory guidance for asset-referenced tokens (ARTs) and e-money tokens (EMTs) across Europe.
The package covers six topics, from stress testing programs and asset reserves to recovery plans. Under MiCA, ARTs are tokens backed by assets like commodities, real estate, or a basket of different assets, while EMTs maintain a stable value by being pegged to fiat currencies and used for payments, like a stablecoin.
Specifically, the authority provides guidelines for token issuers, including the need for enough financial resources (own funds) to cover potential risks. It also creates parameters to determine if an issuer is facing a higher degree of risk, which should lead to an increase in own fund reserves.
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Author: Ana Paula Pereira
